The Union Cabinet has approved the proposal to increase the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month. The move is expected to bring over 51 lakh additional employees under the EPFO social security framework.

The revised ceiling will extend access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance coverage under the Employees’ Deposit Linked Insurance Scheme (EDLI) to a wider section of employees earning between Rs 15,000 and Rs 25,000 per month.

The EPFO wage ceiling was last revised in September 2014, when it was increased to Rs 15,000. The latest enhancement aims to align the social security framework with rising wages, increased incomes and the expansion of formal employment across sectors.

The decision is expected to support employment formalisation, improve worker retention and strengthen long-term retirement security. For employers, wider social security coverage could contribute to workforce stability and improved employee benefits.

The proposal followed inter-ministerial consultations and was recommended by the Expenditure Finance Committee in its meeting held on 16 June 2026. The annual government expenditure is estimated at around Rs 11,339 crore, compared with the existing annual budgetary support of about Rs 10,250 crore. The estimated expenditure over five years is approximately Rs 56,696 crore.

EPFO currently administers the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI), providing social security benefits to millions of workers and pensioners across India.

The Ministry of Labour & Employment and EPFO will undertake the required statutory and administrative measures for implementing the revised wage ceiling.